Power Point Presentation on Accounting Concepts and Principles
description
Transcript of Power Point Presentation on Accounting Concepts and Principles
Name of the teacher : JINU L
Subject : Accountancy
Unit : Theory Base of Accounting
Topic : Accounting Concepts &
Accounting Principles
Welcome
Basic Assumptions on which the accounting system is based.
Accounting Assumptions or Concepts
Accounting Entity
Business Man
Business
Separate existence between business and proprietor
V/s
Going Concern
Business will last for a long time
Money Measurement
Transactions involving money or money’s worth will be recorded in account books
INR
Accounting Period
The period of interval for which accounts are
prepared
Accounting Principles
or ConventionsGeneral law or rule
adopted as a guide to action
Revenue RealisationRevenue results out of
sale of goods and services
Verifiable ObjectiveFinancial Statements must be
verified by some objective evidence
Matching PrinciplesExpenses and Revenue should match same accounting period
Full DisclosureAll material facts should be disclosed
DUAL ASPECTEvery business transactions has dual effect
Debit
Credit
Historical Cost
Transactions should be
recorded at their acquisition cost
Thank you